The signs are there. Interest rates are rising, gas prices are surging, and the deficit is blowing up. A recession is right around the corner. This is the time to start thinking lean, and avoid any new long-term liabilities. For self-employed people this is especially important. People who own their own business are by definition, optimists. If they weren’t, they wouldn’t be self-employed. Optimistic people always think things will be great in the future. Latinos are optimists. I’m an optimist. However, this can be part of the reason we lag the population in terms of wealth. Here are a few tips that can help you prepare for the recession:
- Pay off credit cards and reduce your fixed liabilities
- Start saving more
- Remain liquid – if you have all of your wealth in real estate, you could be vulnerable, especially if you have a mortgage
- Avoid any new liabilities
- Attend conferences and network more – new business opportunities (or jobs) are out there
Conversely, fortunes are made during recession. Assets and companies are sold cheap during recessions and fortunes are made when the economy turns back around. Remember, cash is king. Lets get it right this time!
By definition, unintended consequences are the results of an action different from what was expected or planned. They are often referenced in relation to changes in policies. I have heard the term used for years, primarily related to government policies. Still, I didn’t realize until recently that much has been written on the subject, and most experts believe that there are three categories of unintended consequences:
This week's big news in real estate was the settlement of the class action lawsuits directed against the National Association of Realtors (NAR)...Despite what you may have heard from the media, if the settlement is approved, this would be a modest victory for both realtors and homebuyers. The lawsuit's deeply misguided proponents, including Steve Brobeck from the Consumer Federation of America, have been calling for an outright ban on broker cooperation. In that regard, they didn't get what they wanted.
For years, large companies have been outsourcing to India and China, but the politics with China is unpredictable at best, and India has its limitations as well...However, Mexico and Latin America are just on the other side of our southern border, in the same time zone as the U.S., and with a talented and plentiful population of eager workers. There are also a number of companies that make the process of hiring a nearshore team practically turn-key.